Fed’s Powell: Q2 inflation data do add somewhat to confidence

Fed Chair Jerome Powell, speaking at an event overnight, highlighted that in Q2, the economy made “some more progress” on taming inflation. He noted that there have been “three better readings” on inflation, averaging them places Fed in a “pretty good place.”

Powell reiterated that it wouldn’t be appropriate to start loosening policy until there is greater confidence that inflation is sustainably returning to 2% target. However, he also acknowledged that Q2’s data “do add somewhat to confidence”.